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Thousands of different cryptocurrencies arose in the Bitcoin (BTC) genesis block of 2009. Even though the newest assets are equipped with different technologies and new bells and whistles, Bitcoin still has an edge in a key category, according to a November report. of crypto data company Coin Metrics.
Due to its relatively old framework, people sometimes compare Bitcoin to older and outdated versions of other technological innovations, such as dial-up internet, the report explains:
“All too often, these are part of deliberate marketing strategies pushed by up-and-coming crypto-asset supporters that are reportedly successful where Bitcoin has failed. Tragically, newcomers faced with a strictly technological confrontation framework are ultimately pushed to margins, especially when debates become hyper-technical. “
Technological skill is important. Cryptocurrencies, with their blockchains and underlying ecosystems, however, also serve as forms of money or value in addition to their technological support. Therefore, the distribution of resources plays a key role in the equation, the report notes.
Cryptocurrencies have visited countless stocks over the past decade, especially in 2017, when many alternative crypto assets saw huge gains for holders. Many people and teams have produced their own digital assets, some of which compete with Bitcoin’s value proposition.
As Bitcoin became a better known name, however, organic resource growth became difficult. Once people saw the profitability of new assets, what stopped them from allocating different amounts of their created asset to certain groups, including specific friends or investors? Essentially, because some kind of financial value is now expected at the start of any newly created asset, those new assets lack even distribution among people.
The Coin Metrics report analyzes the centralization observed in cryptocurrency holdings via data from the respective blockchains of those assets. “Clientelism, among other models of unjust distribution of supply, inevitably results in incredibly centralized monetary bases,” the report explains.
“Through on-chain data, we can identify proprietary structures antithetical to Bitcoin and quantify the degree of centralization of wealth within their digital economies,” the report adds.
In essence, Bitcoin began as an experiment unlike anything before its time. Very few people understood how the asset worked in the beginning. “There wasn’t even an exchange rate for the first user to start understanding their Bitcoin valuation,” Coin Metrics explained:
“Along with the aforementioned technical complexity, the results of the first Bitcoin experiments were disastrous: there is an exorbitant amount of BTC that is believed to have been permanently lost during that time. Transactors, after all, treated Bitcoin as it was then: a curious digital monopoly currency experiment “.
Through charts and examples, the report explains Bitcoin’s first journey, which resulted in a wide distribution of coins. Mining also had an impact on asset dispersion. The report data, however, relies heavily on crypto wallet address analysis. Participants sometimes use different wallets and addresses, so the accuracy of the results remains questionable.
Cryptocurrency analyst, trader and YouTuber Tone Vays has also made similar points in the past about decentralizing Bitcoin.
Last month marked the 12th anniversary of the release of the Bitcoin white paper.
